Curbline Properties Reports Second Quarter 2025 Results
“The second quarter of 2025 highlights Curbline’s embedded growth potential with results and same-property growth ahead of expectations, the highest quarterly new leasing volume since formation,
“Curbline is uniquely positioned in the public real estate sector as it looks to scale the first public real estate company focused exclusively on convenience properties given its differentiated investment focus, the leasing economics of the Company’s property type, and its balance sheet which remained in a net cash position at quarter end.”
Results for the Second Quarter
-
Second quarter net income attributable to Curbline was
$10.4 million $0.10 $6.2 million $0.06 -
Second quarter operating funds from operations attributable to Curbline (“Operating FFO” or “OFFO”) was
$26.9 million $0.26 $19.8 million $0.19
Significant Second Quarter Activity and Recent Activity
-
Acquired 19 convenience shopping centers during the second quarter for an aggregate price of
$154.9 million - In May 2025, Fitch Ratings assigned the Company a Long-Term Issuer Default Rating of 'BBB' with a Stable Rating Outlook. As a result, the applicable margin on the Company's Credit Facility was reduced by 40 basis points.
-
In June 2025, entered into a Note and Guaranty Agreement in connection with a private placement of
$150.0 million $100.0 million 5.58% unsecured senior notes due September 3, 2030 and (ii)$50.0 million 5.87% unsecured senior notes due September 3, 2032, to a group of institutional investors, which is expected to close in the third quarter. In conjunction with this agreement, the Company entered into an interest rate lock agreement resulting in a5.79% effective interest rate on the notes due September 3, 2032 and a weighted average coupon of5.65% . -
In July 2025, closed on a term loan agreement which provides for an unsecured, term loan in the amount of
$150.0 million 4.609% based on the loan's current applicable spread. -
Acquired 29 convenience shopping centers during the third quarter to date for an aggregate price of
$260.4 million
Key Quarterly Operating Results
-
Reported an increase of
6.2% in same-property net operating income (“SPNOI”) for the three-month period ended June 30, 2025 compared to June 30, 2024. -
Generated cash new leasing spreads of
15.3% and cash renewal leasing spreads of8.5% , for the trailing twelve-month period ended June 30, 2025 and cash new leasing spreads of10.6% and cash renewal leasing spreads of8.3% for the second quarter of 2025. -
Generated straight-lined new leasing spreads of
33.0% and straight-lined renewal leasing spreads of18.1% , for the trailing twelve-month period ended June 30, 2025 and straight-lined new leasing spreads of29.5% and straight-lined renewal leasing spreads of20.0% for the second quarter of 2025. -
Reported a leased rate of
96.1% at June 30, 2025 compared to96.0% at March 31, 2025 and95.9% at June 30, 2024. -
As of June 30, 2025, the Signed Not Opened spread was 260 basis points, representing
$6.4 million
2025 Guidance
The Company has updated its guidance for net income attributable to Curbline for 2025 to be from
Reconciliation of Net Income Attributable to Curbline to FFO and Operating FFO estimates:
|
FY 2025E (prior)
|
|
FY 2025E (revised)
|
|
Net income attributable to Curbline |
|
|
|
|
Depreciation and amortization of real estate, net |
0.56 — 0.52 |
|
0.62 — 0.58 |
|
FFO attributable to Curbline (NAREIT) |
|
|
|
|
Transaction, debt extinguishment and other costs, net (reported actual) |
0.0 |
|
0.01 |
|
Operating FFO attributable to Curbline |
|
|
|
About Curbline Properties
Curbline Properties is an owner and manager of convenience shopping centers positioned on the curbline of well-trafficked intersections and major vehicular corridors in suburban, high household income communities. The Company is publicly traded under the ticker symbol “CURB” on the NYSE and plans to elect to be treated as a REIT for
Conference Call and Supplemental Information
The Company will hold its quarterly conference call today at 5:00 p.m. Eastern Time. To participate with access to the slide presentation, please visit the Investor Relations portion of Curbline's website, ir.curbline.com, or for audio only, dial 800-715-9871 (
Non-GAAP Measures and Other Operational Metrics
Funds from Operations (“FFO”) is a supplemental non-GAAP financial measure used as a standard in the real estate industry and is a widely accepted measure of real estate investment trust (“REIT”) performance. The Company believes that both FFO and Operating FFO provide additional indicators of the financial performance of a REIT, more appropriately measure the core operations of the Company, and provide benchmarks to its peer group.
FFO is generally defined and calculated by the Company as net income attributable to Curbline (computed in accordance with Generally Accepted Accounting Principles in
In calculating the expected range for or amount of net income attributable to Curbline to estimate projected FFO and Operating FFO for future periods, the Company does not include a projection of gains and losses from the disposition of real estate property, potential impairments and reserves of real estate property, debt extinguishment costs and certain transaction costs. Other real estate companies may calculate expected FFO and Operating FFO in a different manner.
The Company also uses net operating income (“NOI”), a non-GAAP financial measure, as a supplemental performance measure. NOI is calculated as property revenues less property-related expenses and excludes depreciation and amortization expense, interest income and expense and corporate level transactions. The Company believes NOI provides useful information to investors regarding the Company’s financial condition and results of operations because it reflects only those income and expense items that are incurred at the property level and, when compared across periods, reflects the impact on operations from trends in occupancy rates, rental rates, operating costs and acquisition and disposition activity on an unleveraged basis.
The Company presents NOI information herein on a same-property basis or “SPNOI.” The Company defines SPNOI as property revenues less property-related expenses, which exclude straight-line rental income and reimbursements and expenses, lease termination income, management fee expense, and fair market value of leases. SPNOI only includes assets owned for the entirety of both comparable periods. SPNOI excludes all non-property and corporate level revenue and expenses. Other real estate companies may calculate NOI and SPNOI in a different manner. The Company believes SPNOI provides investors with additional information regarding the operating performances of comparable assets because it excludes certain non-cash and non-comparable items as noted above.
FFO, Operating FFO, NOI and SPNOI do not represent cash generated from operating activities in accordance with GAAP, are not necessarily indicative of cash available to fund cash needs and should not be considered as alternatives to net income computed in accordance with GAAP, as indicators of the Company’s operating performance or as alternatives to cash flow as a measure of liquidity. Reconciliations of these non-GAAP measures to their most directly comparable GAAP measures have been provided herein.
The Company calculates Cash Leasing Spreads by comparing the prior tenant's annual base rent in the final year of the prior lease to the executed tenant’s annual base rent in the first year of the executed lease. Straight-Lined Leasing Spreads are calculated by comparing the prior tenant’s average base rent over the prior lease term to the executed tenant’s average base rent over the term of the executed lease. For both Cash and Straight-Lined Leasing Spreads, the reported calculation excludes first generation units and spaces vacant at the time of acquisition and includes all leases for spaces vacant greater than twelve months along with split and combination deals.
Safe Harbor
Curbline Properties Corp. considers portions of the information in this press release to be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, both as amended, with respect to the Company’s expectation for future periods. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that its expectations will be achieved. For this purpose, any statements contained herein that are not historical fact, including statements regarding the Company’s projected operational and financial performance, strategy, prospects and plans, may be deemed to be forward-looking statements. There are a number of important factors that could cause our results to differ materially from those indicated by such forward-looking statements, including, among other factors, (1) changes in the economic performance and value of the Company’s properties as a result of broad economic and local conditions, such as inflation, interest rate volatility and market reaction to tariffs and other trade policies; (2) changes in local conditions such as an increase or decrease in the supply of, or demand for, retail real estate space in our geographic markets; (3) the impact of changes in consumer trends, distribution channels, suburban population, retailing practices and the space needs of tenants; (4) our dependence on rental income which depends on the successful operations and financial condition of tenants, the loss of which, including as a result of downsizing or bankruptcy, could result in significant occupancy loss and negatively impact rental income from our properties; (5) our ability to enter into new leases and renew existing leases, in each case, on favorable terms; (6) our ability to identify, acquire, construct or develop additional properties that produce the cash flows that we expect and may be limited by competitive pressures, and our ability to manage our growth effectively and capture the efficiencies of scale that we expect from expansion; (7) potential environmental liabilities; (8) our ability to secure debt and equity financing on commercially acceptable terms or at all, including the ability to complete the sale and purchase of our private placement notes; (9) the illiquidity of real estate investments which could limit our ability to make changes to our portfolio to respond to economic or other conditions; (10) property damage, expenses related thereto and other business and economic consequences (including the potential loss of rental revenues) resulting from climate change, natural disasters, public health crises and weather-related factors in locations where we own properties, the ability to estimate accurately the amounts thereof and the sufficiency and timing of any insurance recovery payments related to such damages; (11) any change in strategy; (12) the effect of future offerings of debt and equity securities on the value of our common stock; (13) any disruption, failure or breach of the networks or systems on which the Company relies, including as a result of cyber-attacks; (14) impairment in the value of real estate property that we own; (15) changes in tax laws impacting REITs and real estate in general, as well as our ability to qualify as a REIT and to maintain REIT status once elected, (16) our ability to retain and attract key management personnel, and (17) the finalization of the financial statements for the period ended June 30, 2025. For additional factors that could cause the results of the Company to differ materially from those indicated in the forward-looking statements, please refer to the Company’s Annual Report on Form 10-K under “Item 1A. Risk Factors” and our subsequent reports filed with the Securities and Exchange Commission. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof.
Curbline Properties Corp.
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in thousands, except per share |
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|||||
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|
2Q25 |
|
2Q24 |
|
6M25 |
|
6M24 |
|
|
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
Rental income (1) |
|
|
|
|
|
|
|
|
|
|
Other property revenues |
298 |
|
212 |
|
555 |
|
385 |
|
|
|
|
41,402 |
|
28,156 |
|
80,097 |
|
56,195 |
|
|
|
Expenses: |
|
|
|
|
|
|
|
|
|
|
Operating and maintenance |
5,666 |
|
3,059 |
|
11,068 |
|
5,991 |
|
|
|
Real estate taxes |
4,971 |
|
2,975 |
|
9,792 |
|
5,996 |
|
|
|
|
10,637 |
|
6,034 |
|
20,860 |
|
11,987 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net operating income |
30,765 |
|
22,122 |
|
59,237 |
|
44,208 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
Interest expense |
(1,767) |
|
(166) |
|
(2,334) |
|
(416) |
|
|
|
Interest income |
5,580 |
|
0 |
|
11,233 |
|
0 |
|
|
|
Depreciation and amortization |
(16,039) |
|
(9,376) |
|
(30,502) |
|
(18,611) |
|
|
|
General and administrative (2) |
(8,156) |
|
(2,201) |
|
(17,084) |
|
(3,725) |
|
|
|
Other income (expense), net (3) |
95 |
|
(4,143) |
|
553 |
|
(7,245) |
|
|
|
Gain on disposition of real estate, net |
0 |
|
0 |
|
42 |
|
0 |
|
|
|
Income before taxes |
10,478 |
|
6,236 |
|
21,145 |
|
14,211 |
|
|
|
Tax expense |
(72) |
|
0 |
|
(177) |
|
0 |
|
|
|
Net income |
10,406 |
|
6,236 |
|
20,968 |
|
14,211 |
|
|
|
Non-controlling interests |
(14) |
|
0 |
|
(26) |
|
0 |
|
|
|
Net income attributable to Curbline |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares – Basic – EPS |
105,003 |
|
104,860 |
|
104,958 |
|
104,860 |
|
|
|
Assumed conversion of diluted securities |
239 |
|
0 |
|
232 |
|
0 |
|
|
|
Weighted average shares – Diluted – EPS |
105,242 |
|
104,860 |
|
105,190 |
|
104,860 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share of common stock – Basic |
|
|
|
|
|
|
|
|
|
|
Earnings per share of common stock – Diluted |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
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|
Note: Amounts for the three and six month periods ended June 30, 2024 have been carved out of SITE Centers' consolidated financial statements which may impact the comparability between the periods. |
|
||||||||
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(1) |
Rental income: |
|
|
|
|
|
|
|
|
|
|
Minimum rents |
|
|
|
|
|
|
|
|
|
|
Ground lease minimum rents |
3,586 |
|
2,663 |
|
6,790 |
|
5,334 |
|
|
|
Straight-line rent, net |
795 |
|
459 |
|
1,456 |
|
869 |
|
|
|
Amortization of (above)/below-market rent, net |
1,029 |
|
736 |
|
1,959 |
|
1,331 |
|
|
|
Percentage and overage rent |
269 |
|
232 |
|
362 |
|
331 |
|
|
|
Recoveries |
10,365 |
|
5,955 |
|
19,815 |
|
11,683 |
|
|
|
Uncollectible revenue |
(215) |
|
(316) |
|
(434) |
|
(479) |
|
|
|
Ancillary and other rental income |
264 |
|
108 |
|
500 |
|
246 |
|
|
|
Lease termination fees |
0 |
|
1,318 |
|
854 |
|
3,270 |
|
|
|
|
|
|
|
|
|
|
|
|
|
(2) |
SITE SSA gross up |
( |
|
N/A |
|
( |
|
N/A |
|
|
|
|
|
|
|
|
|
|
|
|
|
(3) |
Other income (expense), net: |
|
|
|
|
|
|
|
|
|
|
Transaction costs |
( |
|
( |
|
( |
|
( |
|
|
|
SITE SSA gross up |
625 |
|
N/A |
|
1,256 |
|
N/A |
|
|
|
Debt extinguishment and other |
(187) |
|
(199) |
|
(187) |
|
(204) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Curbline Properties Corp.
|
||||||||
|
in thousands, except per share |
|
|
|
||||
|
|
2Q25 |
|
2Q24 |
|
6M25 |
|
6M24 |
|
Net income attributable to Curbline |
|
|
|
|
|
|
|
|
Depreciation and amortization of real estate, net of non-controlling interests |
16,018 |
|
9,376 |
|
30,464 |
|
18,611 |
|
Gain on disposition of real estate, net |
0 |
|
0 |
|
(42) |
|
0 |
|
FFO attributable to Curbline |
|
|
|
|
|
|
|
|
Transaction, debt extinguishment and other costs, net of non-controlling interests |
529 |
|
4,230 |
|
702 |
|
7,341 |
|
Total non-operating items, net |
529 |
|
4,230 |
|
702 |
|
7,341 |
|
Operating FFO attributable to Curbline |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares & units – Basic: FFO & OFFO |
105,003 |
|
104,860 |
|
104,958 |
|
104,860 |
|
Assumed conversion of dilutive securities |
239 |
|
0 |
|
232 |
|
0 |
|
Weighted average shares & units – Diluted: FFO & OFFO |
105,242 |
|
104,860 |
|
105,190 |
|
104,860 |
|
|
|
|
|
|
|
|
|
|
FFO per share – Basic |
|
|
|
|
|
|
|
|
FFO per share – Diluted |
|
|
|
|
|
|
|
|
Operating FFO per share – Basic |
|
|
|
|
|
|
|
|
Operating FFO per share – Diluted |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures and certain non-cash items: |
|
|
|
|
|
|
|
|
Maintenance capital expenditures |
|
|
|
|
|
|
|
|
Tenant allowances and landlord work, net |
826 |
|
|
|
1,628 |
|
|
|
Leasing commissions, net |
351 |
|
|
|
830 |
|
|
|
Loan cost amortization |
(354) |
|
|
|
(607) |
|
|
|
Stock compensation expense |
(3,072) |
|
|
|
(6,666) |
|
|
|
|
|
|
|
|
|
|
|
Curbline Properties Corp.
|
|||||
|
$ in thousands |
|
|
|
|
|
|
|
|||
|
|
2Q25 |
|
4Q24 |
|
|
Assets: |
|
|
|
|
|
Land |
|
|
|
|
|
Buildings |
995,543 |
|
841,912 |
|
|
Fixtures and tenant improvements |
90,525 |
|
80,636 |
|
|
|
1,686,858 |
|
1,413,111 |
|
|
Accumulated depreciation |
(184,454) |
|
(165,350) |
|
|
|
1,502,404 |
|
1,247,761 |
|
|
Construction in progress and land |
16,779 |
|
14,456 |
|
|
Real estate, net |
1,519,183 |
|
1,262,217 |
|
|
|
|
|
|
|
|
Cash |
429,865 |
|
626,409 |
|
|
Receivables and straight-line rents (1) |
18,774 |
|
15,887 |
|
|
Amounts receivable from SITE Centers |
31,287 |
|
33,762 |
|
|
Intangible assets, net (2) |
101,290 |
|
82,670 |
|
|
Other assets, net (4) |
33,404 |
|
12,153 |
|
|
Total Assets |
2,133,803 |
|
2,033,098 |
|
|
|
|
|
|
|
|
Liabilities and Equity: |
|
|
|
|
|
Revolving credit facilities |
0 |
|
0 |
|
|
Unsecured term loan |
99,090 |
|
0 |
|
|
|
99,090 |
|
0 |
|
|
Dividends payable |
17,403 |
|
26,674 |
|
|
Other liabilities (3) |
88,329 |
|
63,867 |
|
|
Total Liabilities |
204,822 |
|
90,541 |
|
|
|
|
|
|
|
|
Common stock |
1,052 |
|
1,050 |
|
|
Paid-in capital |
1,955,933 |
|
1,954,548 |
|
|
Distributions in excess of net income |
(27,948) |
|
(15,021) |
|
|
Accumulated comprehensive income |
(2,815) |
|
1,207 |
|
|
Non-controlling interest |
2,759 |
|
773 |
|
|
Total Equity |
1,928,981 |
|
1,942,557 |
|
|
|
|
|
|
|
|
Total Liabilities and Equity |
|
|
|
|
|
|
|
|
|
|
(1) |
Straight-line rents (including fixed CAM), net |
|
|
|
|
(2) |
Below-market leases (as lessee), net |
14,823 |
|
14,858 |
|
(3) |
Below-market leases, net |
52,514 |
|
40,149 |
|
(4) |
Acquisition escrow deposits |
22,914 |
|
750 |
|
|
|
|
|
|
|
Curbline Properties Corp.
|
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$ in thousands |
|
|
|
|
|
|
|
|
2Q25 |
|
2Q24 |
|
6M25 |
|
6M24 |
GAAP Reconciliation: |
|
|
|
|
|
|
|
Net income attributable to Curbline |
|
|
|
|
|
|
|
Interest expense |
1,767 |
|
166 |
|
2,334 |
|
416 |
Interest income |
(5,580) |
|
0 |
|
(11,233) |
|
0 |
Depreciation and amortization |
16,039 |
|
9,376 |
|
30,502 |
|
18,611 |
General and administrative |
8,156 |
|
2,201 |
|
17,084 |
|
3,725 |
Other expense (income), net |
(95) |
|
4,143 |
|
(553) |
|
7,245 |
Gain on disposition of real estate, net |
0 |
|
0 |
|
(42) |
|
0 |
Tax expense |
72 |
|
0 |
|
177 |
|
0 |
Non-controlling interests |
14 |
|
0 |
|
26 |
|
0 |
Total Curbline NOI |
30,765 |
|
22,122 |
|
59,237 |
|
44,208 |
Less: Non-Same Property NOI |
(10,081) |
|
(2,653) |
|
(18,617) |
|
(5,288) |
Total Same-Property NOI |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Curbline NOI % Change |
|
|
|
|
|
|
|
Same-Property NOI % Change |
|
|
|
|
|
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|
View source version on businesswire.com: https://www.businesswire.com/news/home/20250728065110/en/
For additional information:
Conor Fennerty,
EVP and Chief Financial Officer
(216) 755-6200
Source: Curbline Properties Corp.
